The American Economy

The Dodd Washington Seminar, a forum sponsored by Sen. Christopher Dodd focusing on contemporary American policy issues, invited Alan Greenspan, chairman of the Federal Reserve Board, to speak on the American economy. Specifically, he discussed how changes in the Soviet Union and Eastern Europe have affected the American economy. Mr. Greenspan said the recession was slowing in the first quarter of 1991, although it still gripped the economy. He also said the decline in the U.S. G.N.P. in late 1990 and early 1991 could almost completely be attributed to the stagnation in the U.S. motor vehicle industry. He predicted the economy would “bottom out,” and begin to rise, but said indications of an actual improvement in the economy would actually show up in an increase of orders in capital goods, which has not occurred yet. Following his remarks, Chairman Greenspan responded to questions from the audience. close